Answer:value of stock for the required return of 12 % = $53
Explanation:
Given
current dividend just paid = $3.00
dividend to grow at constant rate of 6%
required rate of return =12%
to calculate the value of stock for the requitred return of 12 % , we use the dividend growth model which is
Current price = dividend ( 1 + growth rate )/ (required rate -growth rate )
= 3 x (1+6%) / 12-6 = 3 x 1.06 /6% =3.18/0.06= $53
Therefore value of stock for the requitred return of 12 % ,= $53
Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
Answer:
The correct answer is A. Most water companies reduce the cost per unit of water as the amount of water used by a customer increases.
Explanation:
Volumetric rates are calculated per unit of water used; those related to production are charged per unit of production obtained with water; those linked to inputs are calculated per unit of a complementary input used (such as fertilizers); and in relation to the surface, per hectare irrigated. Level rates are based on the volumes used, but the unit price increases each time a volume threshold is exceeded. Binomic rates are proportional to the volume plus a fixed fee for access to irrigation.
Some methods are basically variants of others; for example, rates by levels and binomics are types of prices related to the volume of water. In practice, there are still other variations. In India, the rates per unit area may vary from one crop to another or between seasons, according to the method of irrigation (flooding, ridges or furrows), and in some cases they can be paid whether used or not. use the water.
Answer:
e. accessory equipment
Explanation:
Accessory equipment are the goods and services that are used by firms and organizations to complete their daily operation. They consist of products and services which are used in the production processes. Likewise, they are considered import which makes them expensive compared to other capital goods. These goods can easily be replaced without affecting the whole process.
Answer:
The total amount was $4419.76
Explanation:
The 5% of $4000 is $200 so after a 2 year period added to the amount the original deposit of $4000 then A is the correct and closest equal amount.
